Department of Defense Appropriations Act, 1996 - Title I: Military Personnel - Appropriates funds for FY 1996 for active-duty and reserve personnel in the Army, Navy, Marine Corps, and Air Force and for National Guard personnel in the Army and Air Force.

Title II: Operation and Maintenance - Appropriates funds for FY 1996 for the operation and maintenance (O&M) of the Army, Navy, Air Force, and the defense agencies (including a transfer of funds in each case), the Marine Corps, the reserve components, and the Army and Air National Guards. Appropriates funds for the U.S. Court of Appeals for the Armed Forces, environmental restoration, defense (including a transfer of funds), the 1996 Summer Olympics, overseas humanitarian, disaster, and civic aid assistance, and nuclear threat reduction programs with respect to republics of the former Soviet Union.

Title III: Procurement - Appropriates funds for FY 1996 for procurement by the armed forces and its reserve components of aircraft, missiles, weapons, tracked combat vehicles, ammunition, shipbuilding and conversion, and for other procurement. Appropriates funds for defense-wide procurement and for National Guard and reserve equipment.

Title IV: Research, Development, Test and Evaluation - Appropriates funds for FY 1996 for research, development, test and evaluation by the armed forces and defense agencies. Appropriates funds for the Directors of Test and Evaluation and Operational Test and Evaluation.

Title V: Revolving and Management Funds - Appropriates funds for: (1) the Defense Business Operations Fund; and (2) programs under the National Defense Sealift Fund.

Title VI: Other Department of Defense Programs - Appropriates funds for: (1) the Department of Defense (DOD) medical and health care programs; (2) the destruction of lethal chemical agents and munitions; (3) drug interdiction and counter-drug activities, defense (including a transfer of funds); and (4) expenses and activities of the Office of the Inspector General in carrying out the Inspector General Act of 1978.

Title VIII: General Provisions - Specifies authorized, restricted, and prohibited uses of appropriated funds, including authorized fund transfers between and among various DOD accounts.

(Sec. 8010) Authorizes procurement funds appropriated under this Act to be used for multiyear procurement contracts for UH-60 Blackhawk and Apache Longbow helicopters, as well as the M1A2 tank upgrade.

(Sec. 8012) Prohibits during FY 1996 the management by end strengths of DOD civilian personnel.

(Sec. 8027) Authorizes the Secretary of Defense to establish with host governments of NATO-member countries an account for the deposit of residual value amounts negotiated in the return of U.S. military installations to such countries.

(Sec. 8044) Authorizes DOD to incur obligations of up to $350 million for DOD personnel compensation, military construction projects, and supplies and services in anticipation of receipts of contributions from the government of Kuwait.

(Sec. 8045) Earmarks funds from this Act for the Civil Air Patrol.

(Sec. 8046) Prohibits any funds appropriated under this Act from being used to establish a new federally funded research and development center (FFRDC). Allows FFRDC consultants to be paid for such services only to the same extent as members of the Defense Science Board. Limits the amount that may be obligated during FY 1996 for financing activities of defense FFRDCs.

(Sec. 8047) Provides Buy American requirements with respect to the DOD procurement of carbon, alloy, or armor steel plating.

(Sec. 8054) Authorizes the payment of voluntary separation incentive payments to military personnel.

(Sec. 8062) Limits to $315 million the total amount that may be appropriated under this Act for FY 1996 to fund the Uniformed Services Treatment Facilities program.

(Sec. 8065) Allows FY 1996 DOD O&M appropriations to be used to purchase items having an investment unit cost of not more than $100,000.

(Sec. 8068) Prohibits the use of funds: (1) for the modification of an aircraft, weapon, ship, or other equipment that the military department concerned plans to retire or otherwise dispose of within five years after completion of the modification; (2) to transport chemical munitions to the Johnston Atoll for storage or demilitarization (with an exception and an authorized wartime waiver by the President); (3) by a DOD entity without compliance with the Buy American Act; (4) for assistance to or programs in the Democratic People's Republic of North Korea unless specifically appropriated for such purpose; (5) to reduce the civilian medical and medical support personnel assigned to military treatment facilities below the September 30, 1995, level; (6) for the procurement of ball and roller bearings not produced by a domestic source and of domestic origin; (7) for payments on new contracts on which allowable costs charged to the Government include payments for individual compensation at a rate in excess of $200,000 per year after July 1, 1996; (8) for the design, development, acquisition, or operation of more than 47 Titan IV expendable launch vehicles; (9) to support or finance during FY 1996 the activities of the Defense Policy Advisory Committee on Trade: (10) to establish additional field operating agencies of any element of DOD during FY 1996, except for those funded within the National Foreign Intelligence Program; or (11) to transport military personnel to Edwards Air Force Base for training rotations at the National Training Center after April 15, 1996.

(Sec. 8072) Earmarks funds appropriated under this Act for the mitigation of adverse environmental impacts on Indian lands resulting from DOD activities.

(sec. 8073) Limits the use of funds appropriated under this Act for the High Performance Computing Modernization Program to the acquisition and sustainment of operations.

(Sec. 8075) Directs the Secretary, to the extent authorized by law, to issue loan guarantees in support of U.S. defense exports not otherwise provided for, with a total loan guarantee contingent liability limit of $15 billion. Requires that: (1) exposure fees collected by the Secretary be paid by the country involved and not financed as part of a guaranteed loan; and (2) the Secretary provide quarterly reports to specified congressional committees concerning such loan guarantees.

(Sec. 8092) Directs the Secretary, upon the enactment of this Act, to make specified transfers between various DOD appropriation accounts.

(Sec. 8096) Prohibits funds available to either DOD or the Central Intelligence Agency for drug interdiction or counter-drug activities from being transferred to another department or agency except as specifically provided in an appropriations law.

(Sec. 8097) Authorizes DOD O&M funds appropriated for increasing energy and water efficiency in Federal buildings to be transferred to other DOD funds or accounts for related projects.

(Sec. 8098) Earmarks specified FY 1996 Air Force appropriations for obligation only for those Titan IV vehicles and related activities under contract as of the date of enactment of this Act.

(Sec. 8100) Requires at least 30 percent of the pentaborane currently stored at Edwards Air Force Base, California, to be retained until the Secretary of Energy makes certain certifications to the appropriations committees with respect to the use of the pentaborane at the Idaho National Engineering Laboratory.

(Sec. 8101) Reduces by $30 million the total amount appropriated in titles II through IV of this Act for savings achieved through increased management of contractor automatic data processing costs charged under DOD acquisition contracts.

(Sec. 8102) Requires, no later than October 1, 1995, that each DOD disbursement in excess of $5 million be matched to a particular obligation before the disbursement is made. Provides exceptions.

(Sec. 8104) Prohibits funds appropriated to the Army from being obligated for the procurement of 120mm mortars or mortar ammunition manufactured outside the United States.

(Sec. 8107) Authorizes the Secretary of the Air Force to enter into agreements to modify leases of housing units being constructed if deemed to be in the best interests of DOD.

(Sec. 8107A) Extends through FY 1997 the authorization for a military construction project at an Indiana, Pennsylvania armory.

(Sec. 8108) Prohibits the use of funds appropriated by this Act for the lease or charter by DOD of certain vessels for the transportation of fuel or oil unless such vessels are constructed with a double hull.

(Sec. 8109) Prohibits the use of funds appropriated or made available in this Act to the Navy to develop or procure either: (1) main propulsion engines for the LPD-17 class of ships; or (2) an emergency generator set for the New Attack Submarine, unless such equipment is powered by a diesel engine manufactured in the United States by a domestically operated entity.

(Sec. 8112) Directs the Secretaries of Defense and the Army to reconsider the decision not to include the infantry military occupational specialty among the military skills and specialties for which special pays are provided under the Selected Reserve Incentive Program.

(Sec. 8113) Directs the Secretary of Defense to report quarterly to specified congressional committees on all costs incurred by DOD in implementing or supporting United Nations (UN) Security Council resolutions.

(Sec. 8114) Limits to $52 million the amount that may be obligated or expended for the dismantling and destruction of chemical weapons of the former Soviet Union until the President makes certain certifications to the Congress with respect to the neutralization of Russia's chemical weapons and the resolution of issues under the Wyoming Memorandum of Understanding and the 1990 Bilateral Destruction Agreement.

(Sec. 8115) Expresses the sense of the Congress that, in the event of a deployment or participation of U.S. armed forces in any international peacekeeping, peace enforcement, and humanitarian assistance operation, the President must consult with bipartisan congressional leadership and specified congressional committees. Provides exceptions. Requires such consultation at least 15 days before such deployment or participation, whenever possible, with a national security exception. States that, whenever there is such a deployment, the President should, within 90 days, seek emergency supplemental appropriations to meet DOD's incremental costs associated with such deployment.

(Sec. 8116) Expresses the sense of the Senate that France and China should abide by the current international moratorium on nuclear test explosions and refrain from conducting underground nuclear tests in advance of a comprehensive test ban treaty.

(Sec. 8117) Prohibits, unless specified congressional committees are notified 15 days in advance, the use of FY 1995 DOD funds for the transfer to another nation or international organization of any defense articles or services for use in an international peacekeeping, peace-enforcement, or humanitarian assistance operation.

(Sec. 8118) Prohibits the use of funds made available under this Act for: (1) making a financial contribution to the UN for the cost of any UN peacekeeping activity or for payment of any U.S. arrearage to the UN; (2) administering any policy that permits the performance of abortions at DOD medical treatment or other facilities, except where the life of the mother is endangered or where the pregnancy is the result of an act of rape or incest; (3) the procurement of munitions unless such acquisition fully complies with the Competition in Contracting Act; (4) implementing any change to the computation of military retired pay as required by law in FY 1995 for military personnel who entered the armed forces before September 8, 1980; (5) paying a DOD contractor for amounts paid to any employee that represent a bonus which is part of restructuring costs associated with a business combination; or (6) financing housing for any individual who was a member of the military forces of the Soviet Union or the Russian Federation.

(Sec. 8124) Expresses the sense of the Congress that none of the funds available to DOD shall be obligated or expended for the deployment or participation of any U.S. armed forces in any peacekeeping operation in Bosnia-Herzegovina, unless such deployment or participation is specifically authorized by a law enacted after the date of enactment of this Act. Provides exceptions.

(Sec. 8125) Reduces by $832 million the total amount appropriated in this Act to reflect savings from revised economic assumptions. Allocates such reduction among various military departments and accounts.

(Sec. 8126) Earmarks funds from revenues collected by the Defense Business Operations Fund for termination liability, lease, and operational costs for aircraft to accomplish the VC-137 aircraft mission.

(Sec. 8127) Authorizes the obligation of Air Force missile procurement funds for the payment of satellite on-orbit incentives in the fiscal year in which the incentive payment is earned.

(Sec. 8128) Earmarks specified Army and Air Force funds for the support of a NATO Alliance Ground Surveillance program based on the Joint Surveillance-Target Attack Radar System.

(Sec. 8129) Makes specified reductions in funding under title IV for Army, Navy, Air Force, and Defense-wide research, development, test and evaluation. Prohibits any such reduction from funds made available for ballistic missile defense.

(Sec. 8130) Requires fixed and mobile telecommunications support to be provided by the White House Communications Agency to the United States Secret Service without reimbursement in connection with protection services at the White House Security Complex in the Washington, D.C. Metropolitan Area and Camp David, Maryland.